Document Type
Article
Publication Date
Summer 1999
Abstract
Using data from selected acquisition reports, Drezner et al. (1993) show that reform initiatives from 1960 to 1990 did not reduce cost growth on 197 defense programs. The average cost growth on these programs was 20 percent and did not change significantly for 30 years. Using data from the Defense Acquisition Executive Summary data base, we show a similar result. Initiatives based on the recommendations of the Packard Commission did not reduce the average cost overrun percent experienced on 269 completed defense acquisition contracts evaluated over an 8-year period (1988 through 1995). In fact, the cost performance experienced on development contracts and on contracts managed by the Air Force worsened significantly. Although many factors contribute to poor cost performance, estimation error is a casual factor identified in each study.
Source Publication
Acquisition Review Quarterly
Recommended Citation
Christensen, D.S., Searle, D.A., and Vickery, C. (1999). The Impact of the Packard Commission's Recommendations on Reducing Cost Overruns on Defense Acquisition Contracts. Acquisition Review Quarterly: A Publication of Defense Acquisition University. 6 (3). 251-262.
Included in
Finance and Financial Management Commons, Government Contracts Commons, Organizational Behavior and Theory Commons
Comments
Acquisition Review Quarterly (ARQ) was a scholarly peer-reviewed journal published by Defense Acquisition University (DAU) and a predecessor publication to the current Defense Acquisition Research Journal (DARJ). The archive of Acquisition Review Quarterly is available here.